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Diebold Nixdorf sees profit increase in Q2 2026, despite German taxes impacting cash flow

Diebold Nixdorf's Q2 results saw increases in profit and retail sales, but a downgrade in free cash flow due to German tax payments.

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July 29, 2026 by Bradley Cooper — Editor, Connect Media

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Diebold Nixdorf released its Q2 2026 earnings report, which showed an overall increase in profits, but a negative in free cash flow due to German tax payments, according to the report.

When looking at three-month-ended results, the company reported a total gross profit of $239.6 million by GAAP and $245.3 million by non-GAAP, an increase from $234 million and $242.7 million year-over-year, respectively. This represents a total gross margin of 25.7% by GAAP and 26.4% non-GAAP, compared to 25.6% and 26.5% year-over-year.

Operating expenses sat at $362.6 million GAAP and $327.7 million non-GAAP, compared to $350.6 million and $334.9 million last year.

"We demonstrated the multiple avenues we have to drive performance across the business during the quarter," Octavio Marquez, president and CEO of Diebold Nixdorf, said in the earnings report. "Our broad solutions portfolio helped us capture additional opportunities in Retail, grow our total backlog sequentially and position us to deliver in the second half of the year. Also, we saw meaningful traction in our strategic growth initiatives across both Banking and Retail, while maintaining consistent execution and cost discipline across our core operations. This combination reinforces confidence in our full-year financial outlook and our ability to deliver long-term shareholder value."

However, the company also saw a free cash flow loss of $28.9 million compared to a positive value of 12.6 million year over year. This was driven by a German tax issue, as it filed its German corporate tax return for the 2024 tax year during Q2 2026.

"Due to increased profitability in our German legal entities, the company's remaining net operating loss carryforward was utilized on the 2024 return, and the Company paid its resulting 2024 discrete German tax liability duringQ2 2026," Diebold Nixdorf stated in the earnings report. "As a result, the Company is now expected to be a cash taxpayer in Germany going forward, and it will be required to remit additional discrete German estimated tax payments during Q3 2026 and Q4 2026 for the 2024 and 2025 tax years. Consequently, the Company will be paying German cash tax attributable to three separate tax years (2024, 2025, and 2026) during 2026."

Diebold Nixdorf's adjusted EBITDA was $120.6 million, representing a margin of 13% compared to $111.2 million and 12.2% year-over-year. When looking at six months ended, the company reported a total gross profit of $332.9 million GAAP compared to $119.7 million GAAP in June 30, 2025.

This represents a turnaround for the company from three years ago, when it filed for Chapter 11 Bankruptcy protection in May 2023. It would later restructure and emerge from the Chapter 11 and 15 proceedings on Aug. 11, 2023, and since then has been able to rebuild its profit margins.

ATM Marketplace reached out to Diebold Nixdorf for feedback and received the following statements from Marquez below.

Q: What were some of the challenges this quarter?

Marquez:Higher memory costs in our electronic point of sale portfolio continued to be a headwind. To address this, we have taken pricing, sourcing and other mitigation actions. While the memory pricing environment remains uncertain, we expect these mitigation actions to continue gaining traction through the third and fourth quarters.

Q: What is Diebold Nixdorf most proud of this quarter?

Marquez: Across the business, we continued to execute the strategic priorities we've discussed throughout the year. In Banking, we continued to expand our branch automation strategy beyond the ATM with growth in teller cash recyclers, Vynamic Transaction Middleware and managed services. Retail delivered another quarter of strong growth across all our regions. We also achieved record service level performance, meeting or exceeding our customers' expectations and continued improving the efficiency of our operating model through lean initiatives.

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About Bradley Cooper

Bradley Cooper is an experienced editor for Connect Media. He has written across a wide range of beats, ranging from food to digital signage to banking, and is the current editor of ATM Marketplace and Food Truck Operator. His background is in information technology, advertising, and writing. When he’s not crafting a story, you can find him going for a run or spending time with his wife and three sons.

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Diebold Nixdorf

As a global technology leader and innovative services provider, Diebold Nixdorf delivers the solutions that enable financial institutions to improve efficiencies, protect assets and better serve consumers.

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